Should I cancel my CC payments?

jonotharn

Hello;

Second time in writing this, first time I completed a perfectly worded post, only for windows to decide it was time to restart for some very apparently important updates!. So, apologies if this version seems rushed.

Unfortunately I have ~10 credit cards, with a significant amount on each, adding up to a substantial amount. I have missed one payment on these over the last 5 years (due to my admin error), but although I have done this, due to the number of cards and size of the total amount, my credit score hovers at 'poor'. Payments exceed £1200 / month. My debt has remained about the same for the last 2 years (I havnt continued to rack up debt).

Recently I lost my job, the redundancy package has allowed me to continue to meet my payments, but has now dried up. I have had difficulty finding a job at the same pay level. I do have an offer for a good job, but at a much lower salary (~60%). This means I have no way to meet my debt repayments. (I have no assets btw)

I have been advised by a friend to visit a CAB and get them to negotiate my debt down for me. I plan to do this but it may take a few days. Although I am loathe, after 6 years, to not honour the committments I entered into, I see no option but to have my debt restructured some way.

I do have ~£600+ of repayments due out in 2 days or so. I am contemplating cancelling these payments before I speak with an advisor, as a first step to entering the debt resturcturing process, but I am also concerned it may affect my credit rating for the forseeable.

Any advice on this appreciated.

Jon

katsu

Your credit rating will be affected by whatever happens next, whether you go to CAB or call CCCS or Payplan or whomever. The effect won't last forever, and you can't currently meet your repayments - so as you don't need more debt now, don't worry about it